Skip to main content

Memory loss, dementia and your money

Planning ahead can help protect your money if your memory starts to fail. 

Understanding memory loss and dementia

Memory loss and dementia don’t always start with big changes. You might forget recent conversations, misplace things more often, or struggle with bills and passwords. If you are supporting someone else, you may notice these changes first.

Planning ahead can help you protect your money and make things easier later.

Start planning

Planning for the future can feel difficult. But doing it early can help you stay in control of your money. It can also make things easier for your family or friends if they need to help later.

It may help to think about:

Dementia Australia has information to help you plan ahead.

A good place to start is appointing an enduring power of attorney.

Appoint an enduring power of attorney

An enduring power of attorney lets you choose someone to make financial and legal decisions for you if you can't make them yourself.

Choose someone you trust to follow your wishes and act in your best interests. They may need to manage your bank accounts, pay bills, deal with services, or sell your home if you move into aged care.

You can choose your partner, adult child, another relative or a friend. You can also choose an independent person, such as the Public Trustee or a solicitor. In some states and territories, you can appoint 2 people. Think about whether they can work well together.

Talk about your choice with your family or close friends. Tell them who you chose and what you want.

If you don’t appoint an enduring power of attorney, someone may need to apply to act for you later. The tribunal or court may choose the person. This may not match up with your wishes.

You can set up an enduring power of attorney using your state or territory forms. Find your state or territory government contact information.

You can also get legal advice and ask a solicitor to help you set it up.

Update your will

Review your will regularly, and make sure it matches your current wishes. If you don't have a will, consider making one.

To make or update a will, you need to understand the decisions you are making and what they mean. A diagnosis of dementia doesn't always mean you can’t to do this. But it can get harder over time, so it can help to make or update your will early.

Keep your will in a safe place and tell someone you trust where it is.

You can also pay a solicitor to make or update your will. Some people can also use their state or territory Public Trustee. Rules and fees vary, so check first.

An estate plan helps you make sure people follow your wishes. Learn more about estate planning and how it can help make sure your wishes are carried out. Understand how to plan your future health care too. And get to know what plans you might make after a dementia diagnosis. 

Plan what happens to your super

To make sure your super goes to the right people when you die, check who you have nominated as a beneficiary. Many funds let you make a binding nomination. You do this through your fund, not through your will.

Check if your nomination expires, and review it after major life changes.

If you don't nominate anyone, the super fund will decide who your super is paid to, often your estate.

You can also nominate your estate. This means your super becomes part of your estate and your will guides who gets it.

If you have more than one super fund, you may want to consolidate them. This can make your super easier to keep track of. But before you consolidate, check if you’ll lose any insurance or other benefits.

If you have a self-managed super fund (SMSF), think about what would happen if you can no longer run it. You may want to:

Running an SMSF can take time and knowledge. If you cannot manage it properly, you may face serious financial consequences.

Get your important documents together

To make things easier for you and your enduring power of attorney, keep your personal and financial information in one place. Keep a copy somewhere safe, such as a bank safe deposit box or with your solicitor.

Start with the basics and add to it over time. Tell someone you trust where to find it.

Be careful with passwords and PINs. If you record them, keep them secure and update them when they change.

The important documents to include are:

Personal documents

House documents

Financial documents

Health documents

Protect yourself from financial abuse

Older people can face a higher risk of financial abuse. This can happen when you rely on someone else to help with money tasks or decisions. Memory loss and dementia can also increase the risk.

Financial abuse can include:

If something does not feel right, talk to someone you trust and get help early. You can also contact your bank and ask them to put extra checks in place. If you are supporting someone else, keep an eye out for sudden money changes or new ‘friends’.

See protect your money in retirement for the signs to watch out for and where you can get help.